Ola Electric marked a pivotal FY26, achieving its first operating cash flow positive quarter in Q4 with ₹91 crore. The company saw a robust expansion in consolidated gross margins to 38.5% and initiated a comprehensive cost reset. With service metrics stabilizing and sales recovering, the company projects Q1 FY27 orders to double to nearly 45,000 units, signaling a strong start to the new fiscal year.
Financial Turnaround and Operating Metrics
The company successfully executed a strategic reset throughout FY26, focusing on gross margin expansion and operating efficiency. Consolidated gross margins reached 38.5% in Q4 FY26, a significant improvement from 34.3% in Q3 FY26 and 13.7% in Q4 FY25. Revenue from operations stood at ₹265 crore for the quarter and ₹2,253 crore for the full fiscal year, with total deliveries reaching 173,794 units in FY26.
Operational Efficiency and Cost Reset
A key highlight of the performance was the significant reduction in operating expenses, which fell from ₹844 crore in Q4 FY25 to ₹428 crore in Q4 FY26. The company expects these costs to trend toward ₹350 crore per quarter in the near future. Service constraints, which hampered demand during the year, have now been resolved, with service turnaround time reducing by 88% and same-day closure rates improving to nearly 87%.
Scaling the Gigafactory and Energy Business
Ola Electric’s cell manufacturing business is transitioning from validation to scale. The Gigafactory currently features 2.5 GWh of operational capacity, with installation toward a 6 GWh target largely complete. The business is developing three core demand engines: Auto cell supply, Shakti for B2B applications, and Mahashakti for grid-scale energy storage. The company expects captive cell consumption to scale significantly by the end of FY27.
Growth Outlook for FY27
Entering FY27, the company remains focused on volume recovery and maintaining margin leadership. Based on current market trends, Ola Electric anticipates Q1 FY27 orders to double on a quarter-on-quarter basis to approximately 45,000 units. Management remains committed to driving the Auto business toward Adjusted Operating EBITDA and free cash flow positivity as operational scale increases.
Source: BSE
